Matt operates a sole proprietorship and files his return on a calendar-year basis. He took out a fire insurance policy for his business effective July 1, Year 1, and paid a premium of $3,600 for 4 years. Matt reports his income and expenses on a cash basis. What is Matt's deductible insurance expense for Year 1?

Answer rating: 100% (QA)

Since Matt reports his income and expenses on a cash basis the deductible insu... View the full answer